Government warns airlines against hike in fares

MUMBAI: With the agitating Air India pilots refusing to join back work and the national carrier cancelling flights thereby reducing capacity, the Indian civil aviation regulator has warned airlines not to go ahead with any inordinate fare increase in an advisory issue to airlines on Friday.

"We have sent out advisory to the airlines that there should not be any inordinate rise in the fares. We are keeping a watch on fare movement. Fares have gone up in the past one month with the peak travel season coming on and we were afraid that with capacity being pulled out from the market (due to Air India and Kingfisher pilot agitation) this time we were afraid that the issue should not become a full blown fare hike issue," EK Bharat Bhushan, the director general of civil aviation told ET.

The government has also mooted setting up a monitoring body that would keep watch on the fare movements so that there is no irrational hike by airlines.

The government though does not control pricing of airlines as it is determined through open market practice and demand and supple determined by travel seasons.

"We have also asked the airlines to be more transparent and post the last minute fare basket on their websites. The fare monitoring body is for future but till that is there we do monitor fare positions closely," Bhusahn said.